MAR Earning Date, Transcript Summary & Report

Room Growth and RevPAR Increase: For the full year, Marriott achieved net rooms growth of 6.8% and global RevPAR rose over 4%.

RevPAR and Occupancy Growth: Fourth quarter worldwide RevPAR increased 5%, with ADR rising 3% and occupancy increasing over one percentage point.

International RevPAR Increase: International RevPAR rose over 7% in the fourth quarter, driven by a 4% rise in ADR and a two percentage point gain in occupancy.

Leisure RevPAR Growth: Fourth quarter leisure RevPAR rose 6% globally, driven by gains in both room nights and ADR across all tiers from luxury to select service.

Gross Fee Revenue Growth: Fourth quarter total gross fee revenues grew 7% to $1.3 billion, primarily due to higher RevPAR and a 13% increase in credit card fees.

Decline in Incentive Management Fees: Incentive management fees (IMFs) decreased year over year, particularly in Greater China and the U.S. and Canada, with a notable decline attributed to lower fees in Maui, impacting overall revenue.

Global RevPAR Growth Outlook: Global RevPAR growth for 2025 is expected to be only 2% to 4%, indicating a slowdown compared to previous years, with Greater China anticipated to remain flat year over year.

Residential Branding Fee Decline: Residential branding fees are projected to decline nearly 50% due to timing of unit sales, significantly impacting overall fee growth expectations for the upcoming year.

Revenue Decline Forecast: First quarter owned, leased, and other revenues are expected to decline year over year to around $55 million, primarily due to renovations at owned hotels, indicating potential short-term revenue challenges.

FX Impact on Gross Fees: Foreign exchange (FX) is expected to negatively impact gross fees by approximately $25 million, adding to the headwinds faced in revenue generation.